Tata Steel rises after Q3 business update; Neelachal Ispat Nigam commences operations

Tata Steel advanced 1.56% after the steel maker said that the crude steel production of the India business in Q3 FY23 stood at 5 million tons and was up 4% on YoY and up 4% on QoQ basis.

Deliveries of Tata Steel India were at 4.73 million tons and were up 7% YoY primarily driven by 11% growth in domestic deliveries, which also led to improvement in product mix.

For the quarter, deliveries of the Automotive & Special Products segment were marginally lower due to drop in automotive production. Branded Products & Retail segment deliveries were up 13% YoY in Q3 FY23. The deliveries of the Industrial Products & Projects segment recorded an increase of 15% YoY and were the best ever quarterly sales driven by increase in value added products.

 

Revenues from Tata Steel Aashiyana, an e-commerce platform for individual home builders, grew by around 49% YoY to Rs. 1,419 crores in 9M FY23.

The steel maker further informed that Neelachal Ispat Nigam (NINL) has begun operations within 3 months of completion of acquisition and is presently undergoing ramp up to rated capacity of approximately 1 million tons. Tata Tiscon rebars are being made from NINL billets.

During the quarter, Tata Steel Europe steel deliveries stood at 1.96 million tons and were lower by 9% on YoY basis but up 5% on QoQ basis. Production in Q3 FY23 was 2.25 million tons, lower by 6% on QoQ and by 12% on YoY basis.

Tata Steel Thailand's production was 0.27 million tons (down 16% YoY) and deliveries amounted to 0.29 million tons (down 9% YoY) in Q3 FY23.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.

The company reported a 90% drop in consolidated net profit to Rs 1,297 crore in Q2 FY23 from Rs 12,548 crore in Q2 FY22. Total revenue from operations fell marginally, by 1%, to Rs 59,878 crore in the second quarter as compared with the same period last year.

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